The alliance of business partnerships work when all partners involved help each partner to reach their business goals. Many times they can help your business to grow quicker. You don’t necessarily have to have a business partner in your business to make it in business but they can be beneficial. They can also be a hassle if you form an alliance with an uncompatible partner.
Here are 6 important points to remember before you commit to a partnership:
- Define What You Need In A Partner
- Do Your Homework
- Is There Compatibility?
- Set Specific Goals
- Develop A Management Strategy
- A Word Of Caution
Define What You Need In A Partner
Plan ahead always. Generate a written plan. Always plan ahead before you partner with someone. Before you connect with someone, plan ahead. Write down & specifically define what traits you are seeking in your partner. If you already have a partner then each partner must write down & specifically spell out his or her expectations for strategic alliances to work. If the expectations are too far apart, the alliance won’t survive.
Try to come together on common ground. Someone may have to compromise or all parties involved need to make adjustments.
Do Your Homework
Make your next move your best move and always, always do your homework. Way before any type of partnership alliance is made. In your business industry, check out your potiential partners credit rating, financial reports and reputation in your industry and community. If you are unsure about someone, trust your gut instincts, if something doesn’t feel right then don’t commit to that partnership.
Is There Compatibility?
Is there any type of compatibility? Are you and the partner or partners working towards a common goal? How well do the partners get along? Do the partners have seperate goals that can work together to benefit the business? These questions and many more questions need to be written down and answered.
When partners work together, it should add up to more than what each party does separately. A partnership must add to your business growth and efficiency and not subtract from it. Any partner alliance that only benefits or helps one partner is unlikely to last. Greed is a HUGE business killer (among other things). Greed and selfishness can destroy a business.
Set Specific Goals
Once the partnerships are formed it is imperative that specific & strategic goals are set by all partners. It is also critical that the goals are established in a legal document or company rules booklet or a company goal sheet etc…. This document should also spell out how any disputes will be resolved.
Develop A Management Strategy
Partnerships just don’t successfully survive without partnership management. Decide how you will communicate with each other and how often you will meet. Communication is always key. Developing any type of business relationship or other type of relationship must have clear and open communication.
A Word Of Caution…
Be careful what you share with your partners. Don’t hide beneficial business info or try to keep another person from succeeding in business. You can choose what business info to give away. Depending on your type of business relationship, you may not want to share customer lists, marketing strategies and product information. Then again, you may need to.
It’s also important to have an exit strategy, if you plan to leave the partnership at anytime. Make sure to have a legal document to spell out how, why and when the alliance will end.
If you’re looking for potential strategic partners, one of the best ways is to network at association events, conventions or trade shows, internet networking sites etc…. A strategic partner can be found among suppliers, competitors or other professionals.
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